Hyundai Motor beats Samsung Electronics to become Korea's most profitable firm

Hyundai Motor's IONIQ 6 / Courtesy of Hyundai Motor

Hyundai Motor Group, SK On to build joint battery plant in Georgia

By Baek Byung-yeul

Hyundai Motor achieved a first quarter operating profit of 3.59 trillion won ($2.7 billion), edging out Samsung Electronics for the first time to becoming the most profitable company among listed firms here since the introduction of the International Financial Reporting Standards (IFRS) in 2009, according to the company Tuesday.

In its first quarter earnings announcement, Hyundai Motor said sales rose 24.7 percent year-on-year to 37.7 trillion won, while operating profit increased 86.3 percent from a year ago.

To improve its competitiveness in the growing electric vehicle (EV) market in the United States, Hyundai Motor Group will establish a battery cell plant in the U.S. State of Georgia with SK On.

Hyundai Motor said it sold 1,021,712 cars around the world in the January-March period, a 13.2 percent increase from a year ago.

"Sales in markets outside of Korea were up by 10.7 percent to 830,665 units, while sales in Korea increased 25.6 percent to 191,047 units. The strong sales mainly stemmed from the improvement of production as chip and component supplies stabilized worldwide," Hyundai Motor said.

The company added that the increase in revenues was possible thanks to rising sales of SUVs and Genesis luxury models as well as favorable exchange rates despite the adverse economic environment. Also, the automaker sold nearly 66,000 EVs in the first quarter, up 48 percent year-on-year.

Hyundai Motor also said it will continue to implement shareholder-friendly policies by setting the dividend payout ratio at 25 percent or higher of its consolidated net profit attributed to controlling interest. It plans to pay dividends quarterly, up from twice a year previously.

Regarding the joint battery cell plant with SK On, Hyundai Motor Group said its affiliates ― Hyundai Motor, Kia and Hyundai Mobis ― each approved the plan at their respective board meetings, Tuesday. In November 2022, the group signed an agreement with SK On to secure EV battery supply for the North American market.

The group said it will set up a battery cell production joint venture with SK On. The total investment amount for the joint venture is expected to be about $5 billion, with the group and SK On each holding a 50 percent stake.

The battery cell plan will be located in Bartow County, Georgia, close to Hyundai Motor Group's U.S. production facilities. The plant is expected to start manufacturing batteries in the second half of 2025 with an annual production capacity of 35-gigawatts, which is sufficient to support the production of 300,000 EVs.


Baek Byung-yeul baekby@koreatimes.co.kr

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